Markets This Morning
Unconfirmed reports that Iran has offered to reopen the Strait of Hormuz within seven days has pushed UK wholesale gas prices lower this morning. The reports suggest that this latest proposal has already been conveyed to Washington and was offered on the basis that the U.S. takes initial steps toward easing military pressure in the region. After opening above its previous close, the front month NBP contract last went through at 177.00p per therm, down 6.72p day-on-day. Crude oil prices have had a more cautious response to the latest developments, with the front month Brent contract last going through at $99.54 a barrel, down just 80 cents day-on-day.
Yesterday in Summary
UK gas prices and crude oil markets fell on Monday as optimism over potential diplomatic progress between the United States and Iran increased. President Donald Trump indicated he was open to meeting with the Iranian President at the United States General Assembly this week, sparking speculation that talks aimed at ending the conflict and potentially reopening the Strait of Hormuz could resume. The front month NBP contract fell by 16.56p to settle at 181.60p per therm. A partial recovery of Saudi Arabian oil exports as well as reports that China was putting pressure on Iran to rein in the Houthis activities in the Red Sea further weighed on oil prices, with the front month Brent contract declining by $3.53 day-on-day to close at $100.34 a barrel.
